Correlation Between GE Aerospace and 36168QAF1
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By analyzing existing cross correlation between GE Aerospace and GFL Environmental 5125, you can compare the effects of market volatilities on GE Aerospace and 36168QAF1 and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in GE Aerospace with a short position of 36168QAF1. Check out your portfolio center. Please also check ongoing floating volatility patterns of GE Aerospace and 36168QAF1.
Diversification Opportunities for GE Aerospace and 36168QAF1
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between GE Aerospace and 36168QAF1 is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding GE Aerospace and GFL Environmental 5125 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GFL Environmental 5125 and GE Aerospace is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on GE Aerospace are associated (or correlated) with 36168QAF1. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GFL Environmental 5125 has no effect on the direction of GE Aerospace i.e., GE Aerospace and 36168QAF1 go up and down completely randomly.
Pair Corralation between GE Aerospace and 36168QAF1
Allowing for the 90-day total investment horizon GE Aerospace is expected to generate 7.05 times more return on investment than 36168QAF1. However, GE Aerospace is 7.05 times more volatile than GFL Environmental 5125. It trades about 0.04 of its potential returns per unit of risk. GFL Environmental 5125 is currently generating about -0.01 per unit of risk. If you would invest 16,744 in GE Aerospace on September 3, 2024 and sell it today you would earn a total of 1,472 from holding GE Aerospace or generate 8.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 86.3% |
| Values | Daily Returns |
GE Aerospace vs. GFL Environmental 5125
Performance |
| Timeline |
| GE Aerospace |
| GFL Environmental 5125 |
GE Aerospace and 36168QAF1 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GE Aerospace and 36168QAF1
The main advantage of trading using opposite GE Aerospace and 36168QAF1 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GE Aerospace position performs unexpectedly, 36168QAF1 can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in 36168QAF1 will offset losses from the drop in 36168QAF1's long position.| GE Aerospace vs. Illinois Tool Works | GE Aerospace vs. Dover | GE Aerospace vs. Cummins | GE Aerospace vs. Eaton PLC |
| 36168QAF1 vs. The Travelers Companies | 36168QAF1 vs. GE Aerospace | 36168QAF1 vs. Walmart | 36168QAF1 vs. Pfizer Inc |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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